How We Price Teardown Parts: Cost Allocation Explained

When we acquire a motorcycle for teardown, we need a fair way to allocate its total cost across all the extracted parts. Here's how we do it.

The Cost Pool

The total cost pool consists of the vehicle acquisition cost plus any teardown overhead (labor, supplies, storage). This total gets distributed across every part we extract.

Allocation Methods

We use several methods depending on the situation:

Weighted by Market Value: Each part gets a share of cost proportional to its estimated market value. High-value engine components absorb more cost than small fasteners. This is our most common method because it produces the fairest prices.

Weighted by Category: Parts are grouped by category (engine, electrical, suspension, etc.) with predetermined weight percentages. Engine parts absorb 30% of total cost, while fasteners absorb only 2%.

Equal Distribution: Simple division — total cost divided by number of parts. Used when market values aren't available.

Why This Matters to You

This system ensures our pricing is transparent and grounded in actual costs. When you see a price on our store, it reflects:

• A fair share of the acquisition cost
• Condition-appropriate pricing (excellent parts cost more than fair ones)
• Market-based adjustments for supply and demand

We believe in honest pricing. Our margins are built on volume and efficiency, not on overcharging for individual parts.